BitOffer News: Holistic Decline on China A-Shares, Bitcoin Investment- A Better Investment

As coronavirus attacked in Wuhan, China, A-Shares fell sharply by 8.73% when the market opened while more than 3,000 stocks hit limit down. Incomputable investors lost money hopelessly because they have no way to avoid the risk as normal investors. Like what people always said: There is no way out of China A-Shares. “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes”, Warren Buffett said, but there are few people who can hold a stock for 10 years.

However, if you are in the Bitcoin trading, you would never be worried about the falls of the market because you can hedge the risk by Bitcoin derivatives anytime and anywhere. Taking Bitcoin Options launched by BitOffer as the example: When you hold Bitcoins, buying Put Bitcoin Options contracts will hedge all the risks that come with your Bitcoins. Like financial investments, investing in Bitcoin has more advantages than investing in the Stock market from the perspectives of the risk and the payoff. In the short-term market, China A-Shares will still be influenced by the coronavirus attacked, and in the near future, it also needs time to recover.

The opening of 2020 is not so kindly as the Gun & Fires between the U.S. and Iran, and the coronavirus attacked in Wuhan, China which may do harms to the global commerce. Then, cryptocurrency becomes the harbor to the investors, and Bitcoin has been considered as the best underlying as safe-haven assets. Moreover, the upcoming 3rd halving of Bitcoin brings all the investors with hopes and desires. Bitcoin may face a huge boost in 2020.

In fact, the crypto market kept rising when it came to the year 2020. Since 2020, the average size of the ETH trade increased by 122%, and the number of large volume transactions rose by 169%. In addition, various indicators of ETF are better than that of Bitcoins while the increase of ETH is 47% and that of Bitcoin is only 29%. At the same time, the volume of ETH futures and options surged. Statistically, more and more funds are transferring to the cryptocurrency market.

From the perspective of the movement, Bitcoin has reached the peak in the last November, the $9,500 mark but it failed to attack the $10,000 mark due to the volume remained low. And a large number of investors need to get the money back in this position. Only after an adjustment, the Bitcoin market will be able to attack the $10,000 mark and boost again.

Thus, the strategy of investing in Bitcoin is clear: Buying when dips. In other words, buying is the best idea of Bitcoin trading. Your payoff will only be depending on which trading you invest: Bitcoin on the spot trading market, Bitcoin futures, Bitcoin options or Bitcoin ETF. Taking Bitcoin Options launched by BitOffer again, it allows investors to earn considerable profits whether the bull or bear market. Moreover, it requests 0 fees, 0 margins, and non-exercise.

What is the difference between Bitcoin on the spot trading market and Bitcoin Options?

1. Buying Bitcoins on the spot trading market: $9,500;

2. Buying a call Bitcoin Options contract: $5.

If the Bitcoin price rises from $9,500 to $10,000, you would get $500 as profit no matter you invest in the spot trading market or Bitcoin Options.

The profit is the same, but the gap in the budget reaches 1,900 times. And when the options contract settled, and the direction you predict is wrong as the Bitcoin price falls from $9,500 to $9,000, you would loss $500 if you buy Bitcoins on the spot trading market, but the largest loss would only be the premium of the options contract ($5) if you invest in the Bitcoin Options. Therefore, we can conclude that Bitcoin Options owns the features that “Limited Risk But Unlimited Profit”.